Whether presentation of a security cheque under a loan agreement...

Whether presentation of a security cheque under a loan agreement could constitute criminal breach of trust punishable under s.409 IPC turned on proof of entrustment and dishonest misappropriation under ss.405-406 IPC. Since the cheque was voluntarily issued as contractual security in a commercial loan transaction and was meant to be presented on default, it did not involve property entrusted by the complainant to the accused, create any fiduciary relationship, or disclose misappropriation; presentation was in terms of the agreement. The complaint was also treated as a retaliatory, abusive attempt to pre-empt defences in the pending s.138 NI Act proceedings. Summoning and NBW orders were set aside and the complaint was quashed. - HC

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